Proposal Would Tap Texas Vehicle Sales Tax for Road Building

AUSTIN (AP) – The head of the state Senate Transportation Committee is proposing a constitutional amendment funneling part of the revenue from Texas’ vehicle sales tax to building and maintaining roads. Sen. Robert Nichols of Jacksonville announced the plan Wednesday during a news conference with Lt. Gov. Dan Patrick. Taxes collected on vehicle sales currently flow into the state budget’s general revenue. If passed by the Legislature and eventually approved by voters, Nichols’ plan would divert all tax collections over $2.5 billion annually for road infrastructure beginning in the 2018-2019 state budgetary cycle. While the amount would fluctuate based on sales totals, Nichols said it could generate $2-plus billion per year. Nichols and Patrick said it was a way to keep top Texas Republicans’ campaign promises to bolster funding for transportation infrastructure without raising taxes.